Note 10 - Income Taxes

3 Months Ended

May. 31, 2015

Notes to Financial Statements

Income Tax Disclosure [Text Block]

10

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INCOME TAXES

The Company’s effective tax rates for the 13 weeks ended May 31, 2015 and June 1, 2014 were 10.5% and 16.7%, respectively. The lower effective tax rate for the 13 weeks ended May 31, 2015 was primarily due to higher portions of taxable income in jurisdictions with lower effective income tax rates and larger foreign tax incentives in the 13 weeks ended May 31, 2015.

The Company continuously evaluates the liquidity and capital requirements of its operations in the United States and of its foreign operations. As a result of such evaluation, the Company recorded a non-cash charge for the accrual of U.S. deferred income taxes in the amount of $63,958 on undistributed earnings of the Company’s subsidiary in Singapore during the fourth quarter of the 2014 fiscal year. In the first quarter ended May 31, 2015, $58,000 was repatriated to the United States. Deferred income taxes of $10,682 were settled through payment with the respective tax authorities.